Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit. (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 63,400 79,360 289, 156 1,300 433,216 148,500 (41,125) $540,591 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and antv $ 82,500 59,625 260,800 2,075 405,000 117,000 (50,500) $471,500 $ 62,141 12,700 74,841 60,500 135,341 $128, 175 7,800 135,975 57,750 193,725 176,250 51,000 178,000 S540.591 159, 250 9 118,525 5471.500